THE RANCOROUS LEASE DISPUTE between Paolo Shoes and its landlord has been resolved out of court, and the custom Italian shoemaker won’t be taking a hike from the corner of Fillmore and Pine for at least two more years.

The clash between the two San Francisco real estate dynasties was recently settled as Paolo Shoes and Webco Group LLC and their lawyers met in the halls of the courthouse awaiting a mandatory settlement conference of a lawsuit based on a disagreement that had dragged on for 10 months with neither side budging.

“We made amends and settled on a rent that is twice what I am paying now, but still below market,” says Paolo Iantorno, the tenant and owner of the store. Under terms of the agreement, he will pay $10,000 a month rent for the first year and $10,500 a month in the second year. Previously, he was paying $5 a foot for the 1,000-square-foot storefront at 2000 Fillmore Street.

Patrick Szeto, a member of the family that owns Webco Group and American Realty and Construction Co., did not return calls or respond to an email seeking comment.

“We met for four hours in the halls and we each had our lawyer with us,” Iantorno says. “The mood, to be honest, was fine. Very constructive. There was no anger or emotion and we talked everything out.”

Still, both sides were at an impasse and ready to go to trial until Iantorno’s father, Sergio Iantorno, showed up and acted as unofficial mediator. His son will not disclose what precisely brought the factions to an agreement. But he hints that his dad made certain amends and pointed out that Paolo had been in the storefront for 10 years and in the Fillmore neighborhood for 15 years and had been a good tenant during those years.

“For Patrick, I now understand that it was business and not personal,” says Iantorno. “We settled our differences — despite the fact that he had a prospective tenant ready to move in and pay $15,500 to $16,500 a month.”

The amiable resolution was a 180 degree turnaround from earlier this year when Paolo Shoes faced eviction on Valentine’s Day when his lease expired. Webco would not extend the lease, claiming Iantorno’s request in July 2013 for an extension did not meet a deadline in the existing lease.

Both sides hired lawyers and spent the fall and winter haggling.

These days, Paolo Iantorno, who has two other retail stores in Hayes Valley — including one called Duke et Duchess that sells its own line of jeans and accessories, — is spending most of his time working for the family real estate business, Realty West. He is doing hands-on renovations of apartment complexes and mixed-use retail and residential properties.

Iantorno says he is grateful his Fillmore Street hassle is behind him.

“My dad and I were talking,” he says. “Maybe there is some way our two families can work together on a deal. I would like that.”

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STREET TALK

TWO TOP TOQUES AT FILLMORE & PINE

He’s not ready just yet to serve up the new name or the food concept planned for the now-shuttered and butcher-papered space on the northwest corner of Pine and Fillmore. But John Litz, who jettisoned the old Thai Stick sign last month, just introduced his partners in the venture he’s set to establish there: the top toque team of Sayat and Laura Ozyilmaz.

Between them, the two chefs have cooked at five of the 50 world’s best restaurants, according to the respected San Pellegrino list for 2018, including: 111 Madison Park and Le Bernardin in Manhattan, Blue Hill at Stone Barn in Tarrytown, N.Y., Murgaritz in San Sebastian, Spain, and San Francisco’s own Saison. All are either Michelin two or three star rated. Currently the duo are owner-chefs of Istanbul Modern SF, a pop-up restaurant on Russian Hill.

It seems fitting that the former shoe repair shop at 2448 Fillmore has been reborn as a shoe store. But while it offers ballet flats, as many other shops do, Rothy’s is not like the rest. Its flats are made in China from recycled plastic water bottles.

“Look good in your Rothy’s and feel good about your Rothy’s,” boasts the online company, which now has its first brick-and-mortar store.

THREE NEW SPOTS OPEN IN THE LOWER FILLMORE

The craft grocer Merchant Roots is now open at 1365 Fillmore, offering gourmet packaged items, prepared food and dinner three nights each week.

The LoMo got another notable new restaurant when the pop-up RTB Fillmore reopened in April at 1552 Fillmore as Avery. It offers tasting menus at $89, $189 and $289, with wine or sake pairings.

A few blocks south at 1521 Eddy, the Fillmore Social Club is open and serving up Korean cuisine in what once was Gussie’s Chicken & Waffles.

COMING TO FILLMORE: WINE WITH VERVE

The former Gimme Shoes shop at 2358 Fillmore — in recent months a series of pop-ups — now has its city approvals to be transformed into Verve, a wine store also offering tastings and other events.

Verve already has a similar shop in Manhattan’s Tribeca neighborhood, where it offers “a curated selection of global greatest hits.”

LET US COUNT OUR MICHELIN STARS

How fortunate are we to live in this neighborhood? The new Michelin guide offers a clue.

• Three Fillmore restaurants got a star: SPQR, the Progress and State Bird Provisions, plus Octavia at Octavia and Bush and Spruce on Sacramento.

• At 3127 Fillmore, Atelier Crenn got two stars.

• And we can still claim Quince, now all beautifully grown up in Jackson Square, which got a full set of three stars, and first planted its roots where Octavia is now.

That’s not all: Dosa and Sociale are on the Bib Gourmands list of restaurants with “exceptionally good food at moderate prices.” (And so is Quince’s handsome brother, Cotogna.)